It’s unusual for buyers to have an early occupancy agreement before closing (move into the home they are purchasing before they formally close on the loan). Typically, the seller will turn over the keys at closing.
Why Would A Buyer Need To Move In Early?
A buyer finds themselves needing to move into a home early mostly because of delays in closing their loan. Let’s say a buyer has a close date of March 30 for your home. Their lease is up on March 31. On March 27, the lender says that they have hit a snafu and they need an extension until April 5. The buyer will find themself scrambling for a place to live and may ask you for an early occupancy agreement before closing if the home you are selling is vacant.
Is It OK To Let A Buyer Move In Early?
This, my friends, is a loaded question! At Town & Parish Realty, we advise our sellers not to allow this. The risks can be high and there are a number of things that can go wrong when it comes to early occupancy.
- The buyer’s loan never closes. Now you have a tenant in your house, they won’t leave and you can’t sell it to someone else. You now have to have them evicted.
- The buyer gets hurt in the property and you get sued.
- We hate to even mention this but what if the property burns down? Your insurance may not cover you because you had a tenant in the property.
I Really Want To Let The Buyer Have An Early Occupancy Agreement Before Closing
Look, we have compassion for people too. We get it! As an agent at Town & Parish Realty, we will do our due diligence for you in covering all the bases to help protect you AND the buyer in this instance. We understand that things happen beyond anyone’s control and sometimes, an early occupancy agreement before closing is necessary to make this a win-win for all parties involved.
Remember, It’s Always Your Decision As A Seller, We Are Just Here To Help Facilitate And Guide You Along The Way.